Stu,
One of the first issues I see with your setup is a proper amp capable of truly handling the 24/96 that you want to pass. I'm talking from experience here :-) - several years ago after thoroughly studying the specs of various receivers, I bought a Sony 7.1 receiver. I was very happy with the upgrade (from an old Technics) until one of my friends suggested Harman Kardon. Thankfully I happened to come across and HK AVR-525 in the local Circuit City (alas!) and thinking that if nothing I can always return it, I brought it home. I ran the same channel from the CD player (just a normal CD player sending analog audio signal) to the 2 receivers, Sony and HK and even my wife could tell the difference.
Second, the speakers - as many here have said, is one of the most critical but often overlooked pieces.
Bottom line - while many would be satisfied with proper sound from a $100 setup, if you're really interested in hearing the difference between CD version and DVD/SACD version, you really have to upgrade your setup with 24/96 capable gears!
Good Luck!
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